Judgment

CHANDRACHUD, J.:- Appellants, 1, 2, 4, 5 and 6 are the directors of Rajnagar Spinning and Weaving Manufacturing Co. Ltd., Ahmedabad and appellant No. 3 is an officer of the said company. On March, 19, 1969 a complaint was lodged against them by respondent 1, an Inspector appointed under the Employees Provident Funds Act, 1952 that they had failed to pay a sum of Rs. 1, 39,419.50 being the contribution to the Provident Fund for the months of June, July and August, 1968 and that thereby they had contravened the provisions of Paragraph 38(1) of the Employees Provident Funds Scheme, 1952, an act punishable under Paragraph 76(a) of the Scheme.

2. An investigation was made into the affairs of the company under Section 15 of the Industries (Development and Regulation) Act, 1951 and on being satisfied that the company was managed in a manner highly detrimental to public interest, the Government of India issued an order dated January 7, 1972 authorising, the Gujarat State Textile Corporation to take over the management of the Company. On May 6, 1972 Gujarat Government issued a notification declaring the company to be a "relief undertaking under S. 4(1)(a)(iv) of the Bombay Relief